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STV News
02-05-2025
- Business
- STV News
Scottish Government asks UK firm to take over failed deposit return scheme
The Scottish Government has asked a UK firm to take over its failed deposit return scheme. Ministers have laid an order before Holyrood, asking for approval for UK Deposit Management Organisation Limited to be designated as the administrator for a deposit return scheme (DRS) in Scotland. Figures from Coca-Cola Europacific Partners, Co-op, Heineken, Lidl GB, Radnor Hills and Tesco sit as directors of the company. The scheme would see shoppers charged a deposit when buying drinks in cans and bottles, which would be repaid to them when empty containers were returned. A Scotland-specific scheme was scrapped after the UK Government declined a request for full exclusion from the Internal Market Act, which meant Scotland could not include glass in the scheme. The Scottish Government is facing a £160m lawsuit over the failed scheme after a judge ruled a waste management firm's case could proceed. Lord Clark ruled in January that Biffa Waste Services Limited's case against the Scottish Ministers could go ahead as the firm seeks damages. The business decided to go to Scotland's highest court, the Court of Session in Edinburgh, because it believes the SNP government is responsible for it incurring a £150m loss. Biffa is seeking compensation for the cash it invested in the collapsed scheme and the subsequent loss of profit. The firm believes the Scottish Government misrepresented the scheme when it assured Biffa it would go ahead. The company is said to have relied on personal assurances from Green Party co-leader Lorna Slater as a reason to invest £55m in vehicles and equipment to prepare for the DRS, before she scrapped it in June 2023. The UK Deposit Management Organisation Limited is set to run the scheme across England, Scotland and Northern Ireland due to be launched October 2027. There will be three legally distinct deposit return schemes in the UK: one in England and Northern Ireland; one in Wales; and one in Scotland, the UK Government said. Scotland's acting net zero secretary Gillian Martin said: 'Establishing a deposit return scheme in Scotland has been a long-running and consistent commitment of the Scottish Government. 'A deposit return scheme will reduce the litter on our streets, increase the recycling of drinks containers and support our net zero ambitions. 'Scottish Ministers have decided that UK Deposit Management Organisation Limited should be designated as the scheme administrator for Scotland, and have laid before the Scottish Parliament the draft Deposit and Return Scheme for Scotland (Designation of Scheme Administrator) Order 2025, which requires approval by the Parliament before taking effect. 'This decision marks an important milestone as we progress towards launching the scheme in October 2027. 'We will continue to engage constructively with UK DMO Ltd, industry and the other nations across the UK to support the delivery of a successful deposit return scheme.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
The Independent
28-01-2025
- Business
- The Independent
Judge rules Biffa can continue with £160m case against Scottish Government
A judge has ruled that waste management company Biffa can proceed with suing the Scottish Government for about £160 million following the collapse of the deposit return scheme (DRS). Lawyers representing the Government had attempted to have the case dismissed, but Lord Clark ruled it can go ahead at the Court of Session Biffa's lawyers say Lorna Slater, the green co-leader who was a minister at the time, 'negligently misrepresented' the state of the scheme which led to the company investing significantly. In their legal arguments, they highlighted a letter from Ms Slater to Biffa's chief executive in May 2022, which set out ministers' 'unwavering commitment' to deliver the DRS in August 2023. However, the Scottish Government changed its plans when UK ministers used the Internal Market Act (IMA) to rule glass bottles could not be included. A UK-wide DRS is not expected to begin before 2027. Lord Clark said the date on which the Scottish Government sought an exclusion from the IMA is a 'matter in dispute between the parties'. Circularity Scotland, which was set up to administer the Scottish DRS, fell into administration in June 2023 and Biffa's contract was terminated. The company said it expected to make profits of £114.8 million over 10 years through the contract and it invested £51.4 million in assets like sorting machines as it prepared for the 'go live' date. The Government's lawyers have previously said the decision by Biffa to start spending money on the scheme was a 'commercial risk' the company had 'chosen to take'. They denied Ms Slater had made any 'negligent misrepresentation' and said ministers did not owe a duty of care to Biffa. In his ruling on Tuesday, Lord Clark said the case would not be dismissed. He said: 'On the first part of the claim, for the pursuer to succeed at the proof the court will have to be satisfied on the following points: there was an assumption of responsibility; the duty was not inconsistent with the statutory powers and duties of the defenders; the pursuer relied, and reasonably relied, upon the defenders' conduct; the breaches of duty occurred; and the loss was caused by the alleged breaches. 'On the alternative case on negligent misrepresentation, the pursuer mainly requires to prove that the pursuer's contention on the proper interpretation of the letter, when viewed in its full context, is correct, and that the pursuer relied, and reasonably relied, upon it, causing the loss of costs. 'Questions also remain in play about the amount of loss on costs and profit which the pursuer can establish.' A Scottish Government spokesperson said: 'The Scottish Government cannot comment on live litigation.' Scottish Conservative MSP Maurice Golden said: 'The SNP-Greens' hopelessly botched and abandoned deposit return scheme leaves taxpayers wide open to a huge compensation payout. 'Biffa and others in the recycling and drinks industry spent a fortune preparing for a scheme that they repeatedly warned was fatally flawed. 'Yet they were ordered to comply with it by ministers who insisted it would go ahead, right up until the 11th hour. 'At the last count, the Scottish Government had spent £168,000 of public money defending this compensation claim, but that will be a drop in the ocean compared to the tab taxpayers will have to pick up if Biffa are successful in their claim.'
Yahoo
28-01-2025
- Business
- Yahoo
Judge rules Biffa can continue with £160m case against Scottish Government
A judge has ruled that waste management company Biffa can proceed with suing the Scottish Government for about £160 million following the collapse of the deposit return scheme (DRS). Lawyers representing the Government had attempted to have the case dismissed, but Lord Clark ruled it can go ahead at the Court of Session Biffa's lawyers say Lorna Slater, the green co-leader who was a minister at the time, 'negligently misrepresented' the state of the scheme which led to the company investing significantly. In their legal arguments, they highlighted a letter from Ms Slater to Biffa's chief executive in May 2022, which set out ministers' 'unwavering commitment' to deliver the DRS in August 2023. However, the Scottish Government changed its plans when UK ministers used the Internal Market Act (IMA) to rule glass bottles could not be included. A UK-wide DRS is not expected to begin before 2027. Lord Clark said the date on which the Scottish Government sought an exclusion from the IMA is a 'matter in dispute between the parties'. Circularity Scotland, which was set up to administer the Scottish DRS, fell into administration in June 2023 and Biffa's contract was terminated. The company said it expected to make profits of £114.8 million over 10 years through the contract and it invested £51.4 million in assets like sorting machines as it prepared for the 'go live' date. The Government's lawyers have previously said the decision by Biffa to start spending money on the scheme was a 'commercial risk' the company had 'chosen to take'. They denied Ms Slater had made any 'negligent misrepresentation' and said ministers did not owe a duty of care to Biffa. In his ruling on Tuesday, Lord Clark said the case would not be dismissed. He said: 'On the first part of the claim, for the pursuer to succeed at the proof the court will have to be satisfied on the following points: there was an assumption of responsibility; the duty was not inconsistent with the statutory powers and duties of the defenders; the pursuer relied, and reasonably relied, upon the defenders' conduct; the breaches of duty occurred; and the loss was caused by the alleged breaches. 'On the alternative case on negligent misrepresentation, the pursuer mainly requires to prove that the pursuer's contention on the proper interpretation of the letter, when viewed in its full context, is correct, and that the pursuer relied, and reasonably relied, upon it, causing the loss of costs. 'Questions also remain in play about the amount of loss on costs and profit which the pursuer can establish.' A Scottish Government spokesperson said: 'The Scottish Government cannot comment on live litigation.'
